MKTG 4451 Exam 2

Rather than simply list characteristics of the firm's internal and external environments, the analyst must also explore the resources possessed by the firm and/or its competitors that are the true causes for the firm's strengths, weaknesses, opportunities, and threats.

"Know what describes look for causes, not characteristics."

What is Google's approach to a marketing strategy in reference to new products?

Aggressive (many internal strengths and many external opportunities) -these firms are so dominant that they can actually reshape the industry or the competitive landscape of their agenda

___ segmentation tends to be the most wifely used basis for segmenting consumer markets because the information is widely available and relatively easy to measure.

Demographic

Why have distribution and supply chain management moved to the top of the list when it comes to achieving a sustainable competitive advantage?

Efficient and effective distribution systems are nearly impossible for competitors to copy.

Blue Ocean's Strategy

Firms develop strategic focus by developing a strategy that stands apart from the competition. Firms can visually identify their strategic focus through the use of the strategy canvas. Firm can use the Four Actions Framework to reorient their strategic focus away from the competition: -ELIMINATE factors that no longer have value for buyers. -REDUCE products that have been designed in a race to beat competition. -RAISE factors well above the industry's standards. -CREATE new sources that of value for buyers.

Strengths and weaknesses stem from what..?

They exist because of resources possessed (or not possessed) by the firm, or in the nature of the relationships between the firm and its customers, employees, or outside organizations (supply chain partners, government agencies, lending institutions, etc.)

Malcolm Baldrige National Quality Award

To demonstrate proficiency, a business must set benchmarks (which are typically, quantitative performance levels of leaders in the industry) and then develop objectives that center on improving performance in each area: leadership strategic planning customer focus measurement, analysis, and knowledge management workforce focus operation focus results

stands for values and lifestyles and divides adult U.S. consumers into one of eight profiles (innovators, thinkers, achievers, experiencers, believers, strivers, makers, survivors) based on their level of resources and one of the three primary consumption motives: ideals (knowledge and principles), achievement (demonstrating success to others), and self-expression (social or physical activity, variety, or risk taking) companies use VALS in a variety of marketing activities: -new product development -product positioning -brand development -promotional strategy -media placement

VALs strategic insights

With respect to IMC decisions, ___ is used to promote lowed-priced products, such as chewing gum, because these products have a lower profit margin.

advertising.

What is the philosophy behind the statement, "Goals without objectives are essentially meaningless?"

because progress is impossible to measure -objectives involve measurable, quantitative outcomes -goals are expressed in general terms and does not contain specific information about where the organization currently stands or hopes to stand in the future

the most powerful approach because it uses actual consumer behavior or product usage to make distinctions about market segments most closely associated with consumer's needs quite difficult to execute in practice because it is expensive and time consuming and the personal characteristics associated with behavioral segments are not always clear

behavior segmentation

With respect to buyer behavior in business markets, ___ buy raw materials and facilitating goods and services to be used in the production of finished goods.

commercial markets

What are characteristics of a competitive advantage especially in reference to specific customer benefits?

customer intimacy (understand customers better than competition and build long-term relationships) product leadership (excel in product development and technology; most advanced) operational excellence (operate at lower cost than their competitors and focus on efficiency operations and processes)

Many managers quickly cut prices when faced with slow sales or an economic downturn. History shows, however, that cutting prices is not always the best strategy. Why is this the case?

cutting prices reduces gross margin that may be difficult to recover

With respect to the consumer buying process, ___ occurs only when the customer's ability and willingness to pay for specific products backs up the wants for those products.

demand.

divides markets into segment using gender, income, or education most widely used for segmenting markets because it is widely available and relatively easy to measure

demographic segmentation

Developing ___ is one of the major benefits a firm can gain from applying for the Malcolm Baldrige National Quality Award.

discontinuous objectives.

Each of the following is a directive for a productive SWOT analysis EXCEPT:

examine issues from the perspective of other functional areas.

focus their marketing on one, small well-defined market segment or niche that has a unique, specific set of needs (typically pay higher prices for specific products that fit their needs; when they don't, it's a problem)

focused marketing

often plays a large part in developing market segments because firms often find that their customers are geographically concentrated

geographic segmentation

a differentiated approach that focuses on a single market segment (find it efficient to seek a maximum share in one segment of the market) main advantage is specialization (focus all resources on serving one market) disadvantage is specialization (putting all eggs in one basket)

market concentration

statements of broad, desired accomplishments -attainability -consistency -comprehensiveness -intangibility

marketing goals

an undifferentiated approach that assumes that all customers in the market have similar needs and wants that can be reasonably satisfied with a single marketing program usually consists of: -one product or brand -one price -one promotional program -one distribution system

mass marketing

The ___ approach is the most widely used approach to market segmentation in medium-to-large sized firms, especially packaged good firms.

multisegment

What are the sequence of events and characteristics of the consumer buying process?

need recognition (marketers must create the appropriate stimuli to foster need recognition) information search (Consumers narrow their potential choices to an evoked set of suitable alternatives that may effect their needs.) evaluation of alternatives (Consumers translate their needs into specific wants for brands or products.) purchase decision postpurchase evaluation (The condition between the buying process and the development of long-term customer relationships.)

Southwest built a competitive advantage based on what strategy?

operational excellence (operate at lower cost than their competitors and focus on efficiency operations and processes)

Many firms offer a wide variety and deep assortment of products in their portfolio. Which of the following is NOT one of the reasons or advantages associated with offering a large portfolio of products?

pricing consistency across brands in the portfolio

Which competitive advantage strategy is associated with core competencies in basic or applied research and excellent marketing skills?

product leadership.

deals with state-of-mind issues such as motives, attitudes, opinions, values, lifestyles, interests, and personality these issues are difficult to measure and often require primary marketing research to properly determine the makeup and size of various market segments most successful and well known tool of this segmentation is VALS, which stands for values and lifestyles

psychographic segmentation

Firms use ___ when they compare the "sale" price to the regular, nonsale price.

reference pricing

What type of target marketing strategy is best used when a firm finds that its capabilities are intrinsically tied to the needs of a specific market segment?

single segment targeting

As a tool of Blue Ocean Strategy, the ___ provides a way to visualize the firm's strategy relative to other firms in the industry. The horizontal axis identifies the key factors that the industry competes on with the products that are offered to customers. The vertical axis indicates the offering level that the firms provide to buyers across these factors.

strategy canvas

A firm may possess many strengths; however, those strengths are not really meaningful unless:

they are useful in satisfying customers' needs.